PM Mitra Scheme & Its Impact On Textile Sector

09 May 2022, Mumbai:

The government has announced operating instructions for the PM Mega Integrated Textile Region and Apparel (PM MITRA) parks program. The state government would transfer land to a Special Purpose Vehicle, a legal body having 51 percent state ownership and 49 percent center equity.

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According to the textile ministry's instructions, the parks' locations will be chosen based on five criteria: proximity to the site, existing textile ecosystem, utility availability, etc.

The distance from the nearest highway, the distance from air cargo, the distance from the airport/railhead, the distance from the inland waterway, and the distance from the multimodal logistic park will all be given a 25% weighting.

Similarly, the current textile ecosystem, such as distance from an existing textile cluster, availability of raw materials and trained workforce suited for the textiles sector, and the presence of skill development institutes, would be weighted at 25%.

The availability of a good quality power source at the site to enable the construction and operation of the park, confirmation of a power distribution license for the Master Developer for the parking area, and approval for open access sourcing of power will each receive a 20% weighting.

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The MITRA parks have a five-year budget of Rs 4,445 crore.

Textiles are targeted explicitly under the PLI plan for high-value man-made fiber (MMF) and technology textiles.

Manufacturing recognized items would receive incentives totaling Rs 10,683 crore over five years. TUFS was a credit-linked subsidy program designed to modernize and upgrade the Indian textile industry's technology.

The Amended TUFS, with a budget of 5,151 crores, was implemented to enable and support micro, small, and medium companies.

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The ministry of textiles also authorized the rationalization and continuation of the Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26, with a total budget of 126 crores this year.

Domestic textile and garment output is about $140 billion, with textile and apparel exports around $40 billion. In 2019, the textile and clothing sector contributed 2% to the country's overall gross domestic product (GDP) and 11% to total manufacturing in gross value added (GVA).

Women make up 70% of the workforce in the clothing sector and 73 percent in the handloom business.

Textile minister Jardosh recently informed parliament the parameters devised for the selection of sites for PM MITRA parks include connectivity to the site (25 percent), the existing ecosystem for textiles (25 percent), availability of utility services at the site (20 percent), state industrial/textile policy (20 percent) and environmental/social impact (10 percent).

13 State Governments present plans of 18 proposals for setting up PM MITRA Parks in their respective states. A National Conference on PM Mega Integrated Textile Regions and Apparel Park (PM MITRA) Parks Scheme was organized by the Ministry of Textiles on 4th May 2022.

RELEVANT NEWS

As the process of awarding the Mega Integrated Textile Region and Apparel (PM MITRA) park accelerates, many states are stepping up their efforts to secure the park. Under the Ministry of Textiles' ambitious plan, seven parks will be built (MoT).

It's worth noting that several Indian states are eager to host this park. Gujarat and Tamil Nadu are ahead of the pack since they adhere to the majority of the rules.

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